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A company purchased 3,400 shares of treasury stock for $40,400 cash. The shares were initially issued for $26,400 and had a $11,400 par value. Which

A company purchased 3,400 shares of treasury stock for $40,400 cash. The shares were initially issued for $26,400 and had a $11,400 par value. Which of the following statements incorrectly describes the effect of the treasury stock purchase?

Total assets remain the same.
Stockholders' equity decreases.
Net income is unchanged.
Earnings per share increases.

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